Companies Act MCQ Part 5 for SEBI Grade A

June 26, 2020
Companies Act MCQ Part 3 for SEBI Grade A

Dear aspirants,
We are presenting you the Companies Act MCQ Part 5 for SEBI Grade A Companies Act Section of the exam.

Companies Act MCQ Part 5 for SEBI Grade A

Q1. Which among the following cannot be source for issue of bonus shares?

  1. Free reserves
  2. Securities Premium account
  3. Capital Redemption Reserve account
  4. Capitalising reserves created by the revaluation of assets

Answer: (4)
The company may issue fully paid-up bonus shares to its members out of its free reserves, the securities premium account or the capital redemption reserve account. No issue of bonus shares can be made by capitalising reserves created by the revaluation of assets.

Q2. Which out of the following is not a type of meeting as per Companies Act, 2013?

  1. Regulatory Meeting
  2. Annual General Meeting
  3. Extraordinary General Meeting
  4. Class Meeting

Answer: (1)
There is no such kind of Regulatory meeting

Q3. Which among the following is not a type of Dividend?

  1. Interim dividend
  2. Final dividend
  3. Equity dividend
  4. Preference share Dividend

Answer: (3)
Interim dividend, Final dividend and Preference share Dividend are types of Dividend

Q4. The section of Companies Act, 2013 related to Declaration of Dividend is ______?

  1. Section 122
  2. Section 123
  3. Section 125
  4. Section 130

Answer: (2)

SEBI Grade A Test Series

Q5. If a company has declared the dividend but has not paid within 30 days from date of declaration of dividend to shareholders, then it has to be deposited in a special account named ______

  1. Free reserves
  2. Securities Premium account
  3. Unpaid Dividend account
  4. Capital Redemption Reserve account

Answer: (3)
Where a dividend has been declared by a company but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend Account.

Q6. Name the section of Companies Act, 2013 related to establishment of Investor Education and Protection Fund?

  1. Section 122
  2. Section 123
  3. Section 125
  4. Section 130

Answer: (3)

Q7. The amount in the Unpaid Dividend Account of companies can be transferred to the Fund Investor Education and Protection Fund if it remains unpaid or unclaimed for a period of _____ years

  1. 4
  2. 5
  3. 6
  4. 7

Answer: (4)
Any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued to the Investor Education and Protection Fund

Q8. Which section of Companies Act 2013 deals with the appointment of Auditors?

  1. Section 139
  2. Section 140
  3. Section 141
  4. Section 142

Answer: (1)
Section 139 of Companies Act, 2013 deals with the Appointment of Auditors by a Company

Q9. According to provisions of Companies Act, 2013 an individual auditor cannot be appointed for more than ____ consecutive years?

  1. 4
  2. 5
  3. 6
  4. 7

Answer: (2)
An Individual as an Auditor for more than one term of Five consecutive years

Q10. According to provisions of Companies Act, 2013 an audit firm cannot be appointed for more than ____ terms of five consecutive years?

  1. 2
  2. 3
  3. 4
  4. 5

Answer: (1)

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Tags: Companies Act MCQ Part 5, Companies Act MCQ Part 5 Quiz